RBA governor: AI could be a bubble and is adding to inflation, not productivity

nordicinst · x · 2026-09-22

The Guardian reports that Reserve Bank of Australia governor Michele Bullock said AI could be a bubble with no evidence yet of efficiency gains: rapid adoption and datacentre investment are adding to inflation rather than growth, and all central banks are watching the risk of a messy tech valuation slump.

She cited Korean central bank research finding employees using AI produced the same output while working 1.5 fewer hours a week. The remarks came ahead of an expected rate rise, contrasting with the government's claim that AI will fix Australia's economy. The article also notes Meta shares rose 11% after debuting its Muse AI agent.

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